Over the course of my first term, I have been proud of our efforts to support our workforce and deliver tax relief to working families, including enacting one of the largest tax cuts in state history, to deliver $1.4 billion annually to taxpayers. This budget builds on this important work.
• This budget provides additional tax relief to working families by reducing the individual income tax rates for the bottom two income tax brackets to provide $175 million of individual income tax reductions over the 2023-25 biennium. By cutting the bottom two tax rates further, this budget continues responsible individual income tax reductions, which now total nearly $1.5 billion annually since 2019.
• To spur additional investment in this state, the state is increasing the refundable share of the research credit from 15 percent under current law to 25 percent beginning in tax year 2024. This increase will provide an incentive for critical research and development spending by Wisconsin businesses that will improve their competitiveness and help develop new products.
• We must continue to attract big events to Wisconsin. Recent successes include hosting the 2020 Democratic National Convention, the 2021 Ryder Cup, the 2024 Republican National Convention, and the 2025 NFL Draft. To keep this momentum, Wisconsin is investing $10 million for the creation of an event and opportunity promotion fund administered by the Wisconsin Economic Development Corporation to attract large scale events.
• This budget fosters entrepreneurship by investing $25 million in the Badger Fund of Funds program overseen by the Department of Administration. This significant investment is aimed at continuing to further develop Wisconsin’s start-up business ecosystem. Improving Wisconsin’s entrepreneurial environment is vital to the state’s economic success, especially in high-growth industries in medical and informational technologies. As a result of my partial veto, the additional $25 million provided by this budget will be evergreen, allowing these new funds to continue to be invested in our state’s entrepreneurs.
• Wisconsin is continuing to build on our successes in attracting and investing in our businesses through a provision in this budget incentivizing business investment by providing an income exclusion on commercial lending by excluding interest earned on commercial loans under $5 million from state taxation.
• This budget provides $590 million in property tax relief through increases in the existing School Levy Tax Credit over the upcoming biennium.
• This budget ensures that typical property tax bills in Wisconsin will be held below the rate of inflation over the coming biennium.
• In recent years, Wisconsin has been lagging behind midwestern states in the funds that we dedicate to tourism marketing. This budget provides $34 million over the biennium to raise Wisconsin’s profile across the country as a premier business, cultural, and recreational destination. This is the largest increase in state history in marketing and advertising funds for the Department of Tourism, and with this investment the department will be able to will run a competitive marketing campaign and keep pace with our neighboring states.
o Of these funds, $3 million over the biennium will be used for grants to “Discover Green Bay” and “Visit Milwaukee” to help capture the attention of the thousands of folks that will attend the 2025 NFL Draft and 2024 Republican National Convention and to show all the wonderful entertainment opportunities Wisconsin has to offer.
• Tourism is an important part of our Wisconsin economy and art tourism is equally as important. That is why it is vital to fund the arts in this budget. Wisconsin will invest $552,500 over the biennium in the Wisconsin Arts Board. This funding is crucial in order to maximize the federal match funding available through the National Endowment for the Arts grants. These funds will continue supporting the tremendous work of individuals and organizations engaged in the arts.
SUPPORTING OUR WORKFORCE
• Investing in the next generation of Wisconsin workers is critical to the future success of our state. This budget invests $7 million over the biennium for the youth apprenticeship program, which gives high school juniors and seniors an opportunity for career exploration and skills development.
• Modernization of technology is crucial for the Department of Safety and Professional Services (DSPS) to continue offering efficient and quality service for professional licensing. This budget upgrades and enhances department information technology systems, subscriptions, and equipment by providing $6.7 million over the biennium. This will allow DSPS to continue effective operation of credentialing and building plan review and permitting software as well as call center functions, ultimately supporting job growth and economic development.
• The budget provides 7.0 FTE positions to allow DSPS to bolster the improvements the department already has made on license processing efficiency, which in turn helps our state’s workforce and our economy by getting people into jobs and providing critical public services faster. These additional positions make progress toward the resources the department needs.
• In order to meet substantially increased public demand for assistance with license and credential application processes, the budget provides 6.0 FTE customer service positions to ensure more customer calls are answered in a timely fashion.
• The budget will increase capacity for DSPS to conduct building plan reviews by providing the department with $465,200 and 3.0 FTE positions. This will help the department review building plans and related inspections quickly and accurately, which will keep building project workers in jobs and decrease project costs.
• The budget will provide DSPS with increased spending authority of $100,000 in fiscal year 2023-24 to develop an assured provider pilot program to modernize the continuing education certification process for realtors.
• To continue support for the successful youth firefighter training grant program and increase the number of volunteer firefighters in the state, the budget provides DSPS with $75,000 in each year of the biennium.
HIGHER EDUCATION
• As part of the state’s building program, the following University of Wisconsin (UW) System projects are enumerated:
o UW-Eau Claire Science/Health Science Building
o UW-Madison Camp Randall Sports Center Replacement
o UW-Stout Heritage Hall
o UW-Oshkosh Donner-Webster Residence Halls
o UW-La Crosse Center for the Arts Parking Ramp and University Police Building addition
o UW-Stevens Point Champions Hall
o UW-Oshkosh Gruenhagen Conference Center
• In addition, the budget provides project planning funds for UW-Milwaukee and UW-Whitewater to ensure important building projects on those campuses continue to progress.
• The budget also sets aside $32 million for the UW System in the Joint Committee on Finance supplemental appropriation, allowing the UW System to request funding during this biennium. This funding is critical to maintaining affordable access to higher education for Wisconsinites, and I encourage the Legislature to promptly release these funds to the UW so that the system can continue its important mission of educating Wisconsinites and bolstering our workforce.
• As a result of my partial veto, the UW System retains 188 positions related to diversity, equity, and inclusion at campuses across the state.
• The Wisconsin Technical College System (WTCS) plays a critical role in bolstering our state’s workforce or our economy. Wisconsin is increasing general aid to the system by providing $9.38 million over the biennium to train Wisconsin’s workforce of the future.
• The highest demanded industries require an additional investment in order to get Wisconsinites the skills and allow folks to fill good-paying, family-sustaining jobs. The budget bolsters the Workforce Advancement Training grants by providing an additional $2 million over the biennium for skilled worker training. These grants are for high demand industries, and additional resources will help provide a relief valve for employers’ demand for skilled workers.
• Providing a quality and affordable education to Wisconsin residents is one of the highest priorities of the WTCS. Books and other educational resources are expensive and cost prohibitive to many families. Wisconsin will invest $3 million over the biennium to provide grants to technical colleges to create open educational resources and course materials. This will allow students to access the material and will help to address the rising prices of textbooks and other resources for students.
• This budget strengthens the state’s health care workforce pipeline in the areas of dentistry and oral hygiene by providing $20 million GPR in the Joint Committee on Finance supplemental appropriation for grants to technical colleges to expand and enhance related offerings.
AGRICULTURAL DEVELOPMENT
• Provides $1 million GPR in each year to help build Wisconsin’s agricultural brand in international markets and increase agricultural exports through the Wisconsin Initiative for Agricultural Exports program (WIAE). This initiative aims to boost the export of dairy, meat, crop, and other agricultural products by 25 percent by June 2026 and allows the Department of Agriculture, Trade and Consumer Protection (DATCP) to have flexibility to respond and react to changing market conditions.
• Invests an additional $300,000 GPR in each year to increase the available funding for the Dairy Processor Grant program. Increasing our state’s dairy processing capacity is critical for farmers to ensure their high-quality milk can be processed into numerous products like cheese, yogurt, and other products. This program provides grants up to $50,000 to help foster innovation, improve profitability, and sustain the long-term viability of Wisconsin’s dairy processing facilities. In May 2023, DATCP announced 21 dairy companies receiving a total of $400,000 in Dairy Processor Grant awards.
• Bolsters the Meat Processor Grant program with an additional $1.6 million in fiscal year 2023-24. This program strives to grow Wisconsin’s meat industry and improve the long-term viability of the livestock sector through services to meat processing facilities. Meat Processor Grants are available to new or existing processors to facilitate changes and expansion to grow harvest capacity and/or increase product throughput. These facilities are crucial in producing various award-winning Wisconsin meat products like sausage and jerky.
• Allocates $538,800 GPR in fiscal year 2023-24 and $541,400 GPR in fiscal year 2024-25 to meet federal expenditure requirements for the meat inspection program. These inspections help ensure the meat products consumed by Wisconsinites are produced safely and match nutrition claims found on food labels.
• Provide $100,000 GPR in each year for mental health assistance to farmers and farm families. Farming brings unique challenges including unpredictable weather, uncertain and volatile markets, and labor shortages. While stress is a part of life, prolonged and increasing amounts can negatively impact overall wellness, even leading to depression or anxiety. This crucial funding enables farmers and farm family members to attend in-person counseling services from a participating mental health provider in their local area at no cost.
SUPPORTING HEALTHIER WISCONSINITES
I believe that every Wisconsinite should have access to quality, affordable healthcare, and that the health and well-being of our state and our economy depend on the health and well-being of our communities. Over the past four years, I have worked to expand access to healthcare, and the 2023-25 budget makes critical investments to continue safety net programs like FoodShare, increase Medicaid reimbursement rates for healthcare providers, improve access to mental and behavioral healthcare, and bolster the healthcare workforce.
HEALTH SERVICES AND LONG-TERM CARE
This budget:
• Increases Medicaid funding for hospitals by $236 million all funds over the biennium through increased base Medicaid reimbursement, Disproportionate Share Hospital payments, rural critical care supplemental payments, Medicaid reimbursement for hospital behavioral health units, and funding for graduate medical education.
• Increases Medicaid reimbursement rates by $149 million all funds over the biennium for primary care services, emergency physicians, and chiropractic services.
• Provides $5 million GPR in the Joint Committee on Finance supplemental appropriation to establish a general dentistry residency program for the Marquette Dental School.
• Increases allied health professional training grants by $5 million GPR on a one- time basis over the biennium and expands grant eligibility to include training for registered nurses.
• Provides $300,000 GPR over the biennium to support the Surgical Collaborative of Wisconsin and its work promoting best practice, better data collection, and stronger relationships between communities and the healthcare industry.
• Allocates funding to administer a certified public expenditure program for public ambulance service providers.
• Fully funds vital safety net programs such as Medicaid, SeniorCare, the Wisconsin Funeral and Cemetery Aids Program, and the Wisconsin Chronic Disease Program, ensuring Wisconsinites with the greatest need have access to care.
• Provides $10 million GPR over the biennium in the Joint Committee on Finance supplemental appropriation to establish up to two crisis urgent care and observation centers that will do the following:
o Serve as regional crisis receiving and stabilization facilities,
o Offer seamless transitions between levels of services offered at the centers,
o Arrange for the transfer to more appropriate treatment options as needed,
o Coordinate the connection to ongoing care, and
o Promote the effective sharing of information between providers to improve service delivery and patient outcomes.
Beyond providing access to these additional services, the centers will help reduce the amount of time law enforcement and first responders currently must dedicate to emergency detention cases by offering a dedicated first responder drop-off location that accepts custody of emergency detention cases and does not require that medical clearances be completed before drop-off.
• Allocates $750,000 GPR annually for free and charitable clinics, allowing these clinics to continue providing their vital services to Wisconsinites in need of care.
• Provides $2 million GPR over the biennium in the Joint Committee on Finance supplemental appropriation to establish a telemedicine crisis response pilot program in order to provide faster and more efficient care.
• Provides $60.5 million all funds in fiscal year 2023-24 and $67.7 million all funds in fiscal year 2024-25 for the administration of the Medicaid and FoodShare programs.
• Fully funds the county income maintenance consortia, the FoodShare Employment and Training program, and the Supplemental Security Income program and Caretaker Supplement.
• Provides $230 million all funds in each fiscal year to reinsure high-cost individuals across all health insurance exchanges, in addition to fully funding the Wisconsin healthcare market. This provision helps stabilize the individual healthcare market and lower premiums for all Wisconsinites.
• Provides $76,300 PR in fiscal year 2023-24 and $101,600 PR in fiscal year 2024-25 to the Office of the Commissioner of Insurance to support 1.0 FTE PR position in the Division of Market Regulation. This position will manage the increased regulatory responsibilities in areas such as licensure application reviews and renewals, rate and form filings and reviews, consumer complaints, and expanded consumer outreach.
• Provides $214,800 PR in fiscal year 2023-24 and $286,400 PR in fiscal year 2024-25 to the Office of Commissioner of Insurance to support 3.0 FTE PR positions in the Division of Financial Regulation. These positions will manage increased regulatory duties and complexity, implement legislation, and continue to meet state accreditation requirements to maintain Wisconsin’s reputation as a trusted insurance regulator.
• Restores funding for the Office of the Commissioner of Insurance’s general program operations.
• Fully funds the Board on Aging and Long-Term Care’s Medigap Helpline, which provides seniors with information on the health insurance options available to them.
• Provides $225.7 million all funds over the biennium to continue the 5 percent rate increase for home and community-based services that were implemented using the federal funds provided to the Department of Health Services through the American Rescue Plan Act. This continuation not only ensures that home and community-based care providers can stay in business, but Wisconsinites can continue to receive the vital care they need.
• Provides $38.4 million all funds over the biennium to increase the direct care and services portion of the Family Care capitation rate, which will further support access to in-home care.
• Increases the amount of funding individuals living in skilled nursing facilities are able to retain for personal needs from $45 to $55 per month.
• Provides $146.4 million all funds over the biennium and requires the Department of Health Services to implement a priced rate for nursing home support services based on the median facility cost plus 25 percent.
• Provides $31.2 million all funds over the biennium to exclude provider incentive payments from the profit limitation in support services. Allowing these incentive payments to be excluded means that providers can focus on the quality of care they provide, rather than the quantity of patients.
• Provides $10 million all funds over the biennium to increase the ventilator dependent resident reimbursement rate for nursing home care from $726 to $926 per day. This $200 per day increase makes it easier for nursing homes to provide the highest quality of care to their most complex residents.
• Provides $2.5 million GPR in fiscal year 2023-24 and more than $5 million GPR in fiscal year 2024-25 to increase funding for Aging and Disability Resource Centers, which serve as a vital bridge between Wisconsin families and systems of care.
• Provides $5 million GPR in fiscal year 2023-24 in the Joint Committee on Finance supplemental appropriation to create a complex patient pilot program to assist hospitals in finding long-term care placements for complex patients.
• Provides $1 million GPR in each year to increase funding for adult protective services.
• Provides $2 million GPR in fiscal year 2024-25 to fund the WisCaregiver Career Program to help address the state’s shortage of certified nursing assistants.
• Provides $225,000 GPR annually to increase funding for home delivered meals that provide countless Wisconsinites across the state with the vital nutrition they need to thrive.
• Provides $2.5 million GPR in each year in the Joint Committee on Finance supplemental appropriation to support the state’s veterans homes, as needed, so that these vital facilities can retain staff, address building and operational needs, and provide the quality of care that our state’s veterans deserve.
• Requires the Department of Veterans Affairs to contract with a vendor to study the Wisconsin Veterans Homes during the upcoming biennium to ensure that our state’s veterans are receiving quality care.
• Allocates $330,200 SEG in each year to increase funding for grants to county and Tribal veterans service offices by 25 percent, ensuring that Wisconsin’s more than 300,000 veterans have access to vital services regardless of their ZIP code.
• Provides $3.5 million GPR in each year of the biennium to the Medical College of Wisconsin to support the recruitment and training of psychiatry and behavioral health residents throughout Wisconsin.
STATE BUILDING COMMISSION
Part of ensuring Wisconsinites have access to healthcare is ensuring we have the infrastructure needed to provide quality, affordable care. Using our state’s historic GPR surplus, this budget:
• Provides $17.7 million SEG to improve the patient admissions area at Winnebago Mental Health Institute. This project will create a new intake and assessment area and a new 12-patient bed wing, which will accommodate increasing admissions and provide space to more efficiently observe, diagnose, and determine placement of patients in the facility.
• Provides $10.7 million SEG to assist with the cost of construction and equipment upgrades for the Marquette University School of Dentistry. The expansion will help increase the supply of dentists in the state, improving accessibility to dental care and improving dental health outcomes.
• Provides nearly $4.8 million SEG from the state’s historic surplus to assist with the expansion costs of the Children’s Hospital Dental Center. This expansion will improve access to dental care for our kids, contributing to healthier kids with healthier smiles and reducing the burden on the state’s urgent and emergency care departments, which will in turn lower overall dental care costs.
HOUSING
